Life Insurance is Wealth Transfer

10 12 2010 Autor: Sherill

www.estatetaxsecrets.com

Your basic life insurance policy will not only play a role in your financial planning, but it can also have a creative part in your estate planning as well. One example on how you can use life insurance as a way to transfer wealth while minimizing taxation is to use a $10,000 tax free yearly gift allowance to your children. Under the law, it is allowed to make a yearly tax free gift to a child with the intention that the money is used for premiums on a life insurance policy. Therefore, the policy is an investment vehicle that is protected from taxation.

 Posted on: Friday, December 10, 2010 at 6:57 pm and is filed under the category Related Topics.
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